MasTec greenshoe exercise on 4% convertibles ups deal to $115 million

By Susanna Moon

Chicago, June 23 - MasTec Inc. said underwriters fully exercised their 15% over-allotment option on $100 million of five-year convertible notes due June 15, 2014.

The $15 million greenshoe for the non-callable notes closed Monday and brings the total size of the issue to $115 million.

The notes priced June 1 at par to yield 4%.

Morgan Stanley & Co. Inc. was the bookrunner, and FBR Capital Markets was co-manager of the registered offering.

The new senior convertible notes may be converted into common shares at a rate of 63.4417 shares per $1,000 principal amount of convertible notes, or at a conversion price of $15.76 per share of common stock.

Proceeds of the convertible offering will be used to refinance MasTec's existing $55 million 8% convertible notes issued in conjunction with MasTec's 2008 acquisition of Wanzek Construction.

Remaining proceeds will be for working capital, for possible acquisitions of assets and businesses and for general corporate purposes.

MasTec is a Coral Gables, Fla., telecommunications and energy infrastructure company.

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